Cattle Farming Business Plan
You’ve come to the right place to create your Cattle Farming business plan.
We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their cattle farms.
Below is a template to help you create each section of your Cattle Farm business plan.
Executive Summary
Business Overview
Pleasant Hill Cattle Farm, located in Des Moines, Iowa, is a registered and licensed cattle farming company. The company operates a 500 acre farm that is home to over 300 cows, all of which are raised in an all-natural environment (no antibiotics, hormones, steroids, etc) and all animals are grass-fed. Pleasant Hill Cattle Farm is also fully equipped with the latest technology and equipment used in the cattle farming industry.
Pleasant Hill Cattle Farm is founded and run by Matthew Jones. Matthew has been a cattle farm operations manager for the past ten years, so he has in-depth knowledge and experience running a business in this industry. Matthew will run the general operations and administrative functions of the company and hire other employees to manage the sales and day-to-day operations.
Product Offering
Pleasant Hill Cattle Farm will be involved in the commercial breeding of cows to provide the following products:
- Ground Beef
- Steaks
- Ribs
- Roasts
- Milk
Customer Focus
Pleasant Hill Cattle Farm will target all residents living in Des Moines, Iowa and the surrounding areas. We will also target supermarkets, restaurants, and other retailers who are interested in selling our products to the public.
Management Team
Pleasant Hill Cattle Farm’s most valuable asset is the expertise and experience of its founder, Matthew Jones. Matthew has been a cattle farm operations manager for the past ten years, so he has in-depth knowledge and experience running a business in this industry. Matthew will run the general operations and administrative functions of the company and hire other employees to manage the sales and day-to-day operations.
Success Factors
Pleasant Hill Cattle Farm will be able to achieve success by offering the following competitive advantages:
- Management: The company’s management team has years of business and marketing experience that allows them to market and serve customers in an improved and sophisticated manner than the competitors.
- Relationships: Having lived in the community for 20 years, Matthew Jones knows all of the local leaders, media, and other influencers. As such, it will be relatively easy for Pleasant Hill Cattle Farm to build brand awareness and an initial customer base.
- Quality products at affordable pricing: The company will provide quality products at affordable pricing, as it has high-quality equipment and uses the latest techniques.
- Good packaging: Pleasant Hill Cattle Farm will utilize product-oriented packaging materials that can reduce the damage in the products at the time of supply.
Download the Cattle Farming business plan template (including a customizable financial model) to your computer here <–
Financial Highlights
Pleasant Hill Cattle Farm is currently seeking $750,000 to start the company. The funding will be dedicated towards securing the farm land and purchasing the necessary equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff and marketing costs for the farm. The breakout of the funding is below:
- Land and Equipment: $250,000
- Cattle Care Supplies: $100,000
- Overhead Costs: $100,000
- Three Months of Overhead Expenses (Payroll, Rent, Utilities): $150,000
- Marketing Costs: $50,000
- Working Capital: $100,000
The following graph below outlines the pro forma financial projections for Pleasant Hill Cattle Farm.
Company Overview
Who is Pleasant Hill Cattle Farm?
Pleasant Hill Cattle Farm, located in Des Moines, Iowa, is a registered and licensed cattle farming company. The company operates a 500 acre farm that is home to over 300 cows, all of which are raised in an all-natural environment (no antibiotics, hormones, steroids, etc) and all animals are grass-fed. Pleasant Hill Cattle Farm is also fully equipped with the latest technology and equipment used in the cattle farming industry.
Pleasant Hill Cattle Farm is founded and run by Matthew Jones. Matthew has been a cattle farm operations manager for the past ten years, so he has in-depth knowledge and experience running a business in this industry. Matthew will run the general operations and administrative functions of the company and hire other employees to manage the sales and day-to-day operations.
Pleasant Hill Cattle Farm History
Matthew Jones is an entrepreneur who seeks to contribute to the growing US economy through cattle farming. Pleasant Hill Cattle Farm will become a recognized cattle farming company in Des Moines, Iowa, ensuring a continuous supply of cattle, milk, meat, and other dairy products.
Matthew has selected an initial location and is currently undergoing due diligence on it and the local market to assess if it is a suitable location for a commercial cattle farm.
Since incorporation, the company has achieved the following milestones:
- Found a farm location
- Developed the company’s name, logo, and website
- Determined supply requirements
- Began recruiting key employees
Pleasant Hill Cattle Farm Services
Pleasant Hill Cattle Farm will be involved in the commercial breeding of cows to provide the following products:
- Ground Beef
- Steaks
- Ribs
- Roasts
- Milk
Industry Analysis
Pleasant Hill Cattle Farm competes against large-scale cattle farmers in the U.S. With the largest fed-cattle industry in the world, the United States is also the world’s largest producer of beef, primarily high-quality, grain-fed beef for domestic and export use. According to the USDA, beef cattle production in the US is one of the largest agricultural industries, making up 17% of the agricultural sector. Though the industry has declined slightly in the past few years, the market size of the Beef Cattle Production industry is expected to increase by 4.5% over the next five years.
Improving the living standards of the people in the country has resulted in a shift in meat preferences, with most choosing beef-based products rather than products derived from pork and chicken. This trend has helped increase revenues and allowed the industry to grow. However, the beef cattle production industry faces many challenges including droughts, the price of feed, and the increasing popularity of plant-based diets.
Download the Cattle Farming business plan template (including a customizable financial model) to your computer here <–
Customer Analysis
Demographic Profile of Target Market
Pleasant Hill Cattle Farm will primarily serve local residents and retailers of cattle dairy products and meat within a 30-mile radius of the farm. These businesses typically gross from $5 million to $10 million in annual revenues and source their supplies from within a 30-mile radius of their facilities.
The precise demographics for Des Moines, Iowa are:
| Total | Percent | |
|---|---|---|
| Â Â Â Â Total population | 1,680,988 | 100% |
| Â Â Â Â Â Â Â Â Male | 838,675 | 49.9% |
| Â Â Â Â Â Â Â Â Female | 842,313 | 50.1% |
| Â Â Â Â Â Â Â Â 20 to 24 years | 114,872 | 6.8% |
| Â Â Â Â Â Â Â Â 25 to 34 years | 273,588 | 16.3% |
| Â Â Â Â Â Â Â Â 35 to 44 years | 235,946 | 14.0% |
| Â Â Â Â Â Â Â Â 45 to 54 years | 210,256 | 12.5% |
| Â Â Â Â Â Â Â Â 55 to 59 years | 105,057 | 6.2% |
| Â Â Â Â Â Â Â Â 60 to 64 years | 87,484 | 5.2% |
| Â Â Â Â Â Â Â Â 65 to 74 years | 116,878 | 7.0% |
| Â Â Â Â Â Â Â Â 75 to 84 years | 52,524 | 3.1% |
Customer Segmentation
Pleasant Hill Cattle Farm will primarily target the following customer profiles:
- Retailers
- Grocery Stores
- Local Residents
Competitive Analysis
Direct and Indirect Competitors
Pleasant Hill Cattle Farm will face competition from other companies with similar business profiles. A description of each competitor company is below.
Shayla Farms
Shayla Farms is one of the large-scale cattle farms in the US, owning an 8,000 ha area. It has well-established relationships with local retailers. It has been in business for 32 years. Shayla Farms offers good quality dairy products and meat. It also has automated equipment and machines, which helps in improving its operations. Moreover, it is also known for delivering large orders at the right time without delay.
Crimson Cattle Farm
Crimson Cattle Farm has been operating since 1995 and is a well-known company that provides good quality beef with affordable pricing as it has effective and efficient cattle rearing machines. It majorly targets local companies and retailers and has a large distribution network that can serve customers up to a 500-mile radius. Crimson Cattle Farm also has a very effective distribution and supply chain network. However, Crimson Cattle Farm’s offerings are only limited to beef.
Cattle USA
Cattle USA has been in business for the past 50 years and enjoys great success. It is one of the largest beef producers in the 200-mile area. It easily caters to local residents primarily due to its prime location. It provides beef and a variety of dairy products including: cheese, yogurt, meat and milk.
Download the Cattle Farming business plan template (including a customizable financial model) to your computer here <–
Competitive Advantage
Pleasant Hill Cattle Farm will be able to offer the following advantages over their competition:
- Management: The company’s management team has years of business and marketing experience that allows them to market and serve customers in an improved and sophisticated manner than the competitors.
- Relationships: Having lived in the community for 20 years, Matthew Jones knows all of the local leaders, media, and other influencers. As such, it will be relatively easy for Pleasant Hill Cattle Farm to build brand awareness and an initial customer base.
- Quality products at affordable pricing: The company will provide quality products at affordable pricing, as it has high-quality equipment and uses the latest techniques.
- Good packaging: Pleasant Hill Cattle Farm will utilize product-oriented packaging materials that can reduce the damage in the products at the time of supply.
Marketing Plan
Brand & Value Proposition
Pleasant Hill Cattle Farm will offer the unique value proposition to its clientele:
- Efficient and effective delivery network
- Good packaging
- Quality products at affordable pricing
- Providing excellent customer service and customer experiences
Promotions Strategy
The promotions strategy for Pleasant Hill Cattle Farm is as follows:
Social Media Marketing
Social media is one of the most cost-effective and practical marketing methods for improving brand visibility. The company will use social media to develop engaging content, such as sharing pictures of the cows and creating educational content about the cattle farm industry.
Website/SEO
Pleasant Hill Cattle Farm will develop a professional website that showcases pictures of the farm and the cows. It will also invest in SEO so that the company’s website will appear at the top of search engine results.
Word of Mouth/Referrals
Matthew Jones has built up an extensive list of contacts over the years by living and working in the midwestern farming industry. Since a number of local cattle farms have ceased operations, they have committed to Matthew that Pleasant Hill Cattle Farm will be their cattle supplier. They trust his work ethic and commitment to the local community.
Billboard
Pleasant Hill Cattle Farm will highlight our location, cows, and products on a major billboard facing the busiest highway in town. The billboard will provide the location of Pleasant Hill Cattle Farm and the website URL.
Pricing
Pleasant Hill Cattle Farm’s pricing will be moderate, so customers feel they receive great value when availing of the products. Pricing will be about 50% lower than retail prices to allow wholesalers and retailers to earn their margins.
Operations Plan
Operation Functions:
The following will be the operations plan for Pleasant Hill Cattle Farm.
- Matthew Jones will be the Owner and President of the company. He will oversee all staff and manage client relations. Matthew has spent the past year recruiting the following staff:
- Sue Smith – will oversee all administrative aspects of running the cattle farm. This will include bookkeeping, tax payments, and payroll of the staff.
- George Baird– Head Farmhand who will oversee the farming staff and day to day operations.
- Ben Brown– Assistant Farmhand who will assist George.
- Frank White– Distribution Manager who will oversee the packaging and distribution of all products.
Download the Cattle Farming business plan template (including a customizable financial model) to your computer here <–
Milestones:
Pleasant Hill Cattle Farm will have the following milestones complete in the next six months.
- 6/202X – Finalize purchase of farm land
- 7/202X – Purchase farm equipment, supplies and materials
- 8/202X – Finalize contracts for grocery store, chain, and restaurant clients
- 9/202X – Purchase initial set of cows
- 10/202X – Hire and train farm staff
- 11/202X – Pleasant Hill Cattle Farm begins farm operations
Management Team
Pleasant Hill Cattle Farm’s most valuable asset is the expertise and experience of its founder, Matthew Jones. Matthew has been a cattle farm operations manager for the past ten years, so he has in-depth knowledge and experience running a business in this industry. Matthew will run the general operations and administrative functions of the company and hire other employees to manage the sales and day-to-day operations.
Financial Plan
Key Revenue & Costs
Pleasant Hill Cattle Farm’s revenues will come from the sales of cattle meat and dairy products to its customers. The major costs for the company will be the cost of land and equipment. The staff will earn competitive salaries allowing Pleasant Hill Cattle Farm to hire experienced workers. In the initial years, the company’s marketing spend will be high, as it establishes itself in the market.
Funding Requirements and Use of Funds
Pleasant Hill Cattle Farm is currently seeking $750,000 to start the company. The funding will be dedicated towards securing the farm land and purchasing the necessary equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff and marketing costs for the farm. The breakout of the funding is below:
- Land and Equipment: $250,000
- Cattle Care Supplies: $100,000
- Overhead Costs: $100,000
- Three Months of Overhead Expenses (Payroll, Rent, Utilities): $150,000
- Marketing Costs: $50,000
- Working Capital: $100,000
Download the Cattle Farming business plan template (including a customizable financial model) to your computer here <–
Key Assumptions
The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the startup business loan.
- Number of Cows: 300
- Average Revenue per Animal: $500
- Number of Products Sold Per Year: 100,000
Financial Projections
Income Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 | |
| Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 | |
| Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
| Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 | |
| Initial expenditure | $10,000 | $0 | $0 | $0 | $0 | |
| Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 | |
| EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 | |
| Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 | |
| PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 | |
| NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
Balance Sheet
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 | |
| Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 | |
| Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 | |
| Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 | |
| Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 | |
| TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 | |
| Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 | |
| Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
Cash Flow Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | ||||||
| Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 | |
| Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 | |
| CASH FLOW FROM INVESTMENTS | ||||||
| Investment | ($180,950) | $0 | $0 | $0 | $0 | |
| Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 | |
| CASH FLOW FROM FINANCING | ||||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 | |
| Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 | |
| Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 | |
| Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
Cattle Farming Business Plan FAQs
What Is a Cattle Farming Business Plan?
A cattle farming business plan is a plan to start and/or grow your cattle farming business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
What are the Main Types of Cattle Farming Businesses?
There are a number of different kinds of cattle farming businesses, some examples include: Cow-calf, Backgrounding, Finishing, and Specific Breed.
How Do You Get Funding for Your Cattle Farming Business Plan?
Cattle Farming businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.
What are the Steps To Start a Cattle Farming Business?
Starting a cattle farming business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop A Cattle Farming Business Plan - The first step in starting a business is to create a detailed cattle farming business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.Â
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your cattle farming business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your cattle farming business is in compliance with local laws.
3. Register Your Cattle Farming Business - Once you have chosen a legal structure, the next step is to register your cattle farming business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options - It’s likely that you’ll need some capital to start your cattle farming business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Cattle Farming Equipment & Supplies - In order to start your cattle farming business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your cattle farming business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.Â
Learn more about how to start a successful cattle farming business: